Thursday, April 28, 2011

Comparing my blog to - Does anyone want to pay me $33K for it?

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The latest stock market craze is Intertainment Media, trading on the Venture under the symbol INT. I love following this stock because it is a true pumpers dream. Every week - and now 2 or 3 times a week for their other projects - the company pushes a press release which has every metric under the sun EXCEPT revenue generating ones. Let's take a look at the latest one for Ortsbo right here

Within the first paragraph it states:

"Since launch in late July 2010, Ortsbo has recorded over 183 Million minutes of User Engagement, over 129 Million Page Views, approximately 40 Million Unique Users and in excess of 58 Million Online Sessions. All of the Ortsbo performance metrics are validated independently through 3rd party verification including Google Analytics."

I'm taking a look at my Google Analytics and my total page views since November (which can be verified by looking at the counter below) is over 33.2 thousand.

Assuming that INT monetizes Ortsbo in a similar way that I monetize my blog through advertising with Adsense, Amazon and other initiatives, one could assume that my page views and its page views are directly correlated to revenue. As a bulk web traffic generator, they do have the advantage of charging a premium for their ad space so I'll give them that. But that will be offset by the fact that much of my traffic is from premium countries, namely the US and Canada. If the bulk of their traffic is from the BRIC countries as they state it is (and other blogs have challenged that fact but if you're reading this you probably already read those) then the page views are actually worth just a fraction of my page views. But just to make things simple, I'll assume that one of my page views is equivalent to one of their page views.

INT currently trades at a $175M market cap, NOT fully diluted but only with the current shares out there. I can't get an honest figure as to how much the fully diluted number is so I'll gave them a break in that respect. Let's say that 75% of their value is currently in Ortsbo, giving that platform a value of about $130M.

Now back to the page views. If my blog generated 33.2K page views and generated 129M page views, then I generate 0.026% of its traffic. Now EVERY INT long likes to justify their share purchase as a great deal by comparing Ortsbo to Facebook or Twitter. So I'm going to do the same.

If I get 0.026% of the traffic, my blog is worth 0.026% of the value of Ortsbo. 0.026% of $130M is $33.5K


Any takers? I'll tell you what. I'll offer my blog to you for just $25K. It's a great deal when comparing to Ortsbo. And if Ortsbo is really worth $1 billion or more like the pumpers say it is, then my blog is actually worth 7-8 times more than $33.5K. You're getting the deal of a lifetime!!!

I just know that there's a ton of people thinking how kindergarten-level my logic is...BUT that's the exact same logic people used when they pumped up INT over $3 thinking someone is out there just BEGGING to buy up this so-far minuscule revenue generating platform for $1 billion or more because of what Twitter or Facebook is worth. 

I await for the first bidders....

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